After Probate

I had inherited some mineral right from my father and am in the process of getting them into my name. There are 4 Producing wells on the property and there are some funds being held for the unleased owners of some of the mineral rights which can't be released until the probate is finished. My question is, what happens once the probate is completed and the title is in my name? do I still received some compensation from these companies? Are there any other benefits? Any help is appreciated. Thank you

Compensation? Why would you expect any compensation?

I am confused. It sounds to me like the poster inherited mineral rights, which are currently producing. It would seem logical that he would "inherit" the income from the royalties. Is this not correct? I am also very new to this, so please forgive me if I am way off base.

Melissa, That would be correct. They should also be entitled to any funds being held. I don’t understand the compensation part. It is possible in some states some interest may be due.

I assumed the term "compensation" was used loosely to cover any monies due....that is where my confusion started!

Rick Howell said:

Melissa,
That would be correct. They should also be entitled to any funds being held. I don't understand the compensation part. It is possible in some states some interest may be due.

Paul, after probate is completed with the court, and the proper documents conveying the minerals have been recorded in the county courthouse, you have one more step to take. You then must notify the company producing those minerals of this change in ownership. Along with your letter informing them, you need to include a certified copy of the recorded deed from your Dad's estate to you.

The company may send you a division order to sign, or possibly request some additional information. After which they should begin paying you for any future production. Depending upon what you meant in your question, other steps may be required to obtain any funds previously held in suspense. Though funds being held on behalf of your father's estate should be sent to you after completing the steps above. Funds being held for previously unlocated, and unleased, mineral owners are a separate matter.

Eastern MT has the right concept. Add to that the possibility of rights you may have if your minerals, once you get them, are located in a state that allows force pooling. Your interests may have been force pooled or if very small, ignored. Know your options before blindly accepting a Division Order.

Thanks Gary. I appreciate the input. I am very new to this so this is all very valuable information to me. Just trying to become more knowledgable.



Gary L. Hutchinson said:

Eastern MT has the right concept. Add to that the possibility of rights you may have if your minerals, once you get them, are located in a state that allows force pooling. Your interests may have been force pooled or if very small, ignored. Know your options before blindly accepting a Division Order.

Gary L Hutchinson

Minerals Management

Melissa, I hate to tell you but you look like a dog!

Now, that's not very polite. I was just having a bad hair day ;)

Michael Hutchison said:

Melissa, I hate to tell you but you look like a dog!

Melissa,

I would definitely send any documents and such by certified mail to make sure someone had to sign for them. I have had in the past a certain federal government entity say that they never did receive the important papers I sent them. When they were sent certified and had to be signed for then it was a different story. Always send important documents and such 'certified mail with a return receipt'. Good luck on your lease, etc.

Melissa, I'll have to agree with Michael about your looks. Bad hair day just doesn't cut it.

Clint Liles

Bravo Eastern MT.

In Texas there is a website for monies held by the state. You can access it, send documents proving that they are yours such as probated wills etc and Bingo, the state sends you all that is owed within 4 to 6 months. I just found a substantial amount paid to my father after his death (then sent to a wrong address in 1984) I had to prove I am the heir to that money. It is all done online and works like a charm once you file that it is yours by inheritance.

great point Clint Liles about the certified mail to anyone who owes you such as oil companies and court houses.

Chesapeake got my division orders wrong 4 times. They were sent to the wrong address twice, then wrong again. I called the CEO of CHK and got it right the 5th time, immediately after the call. the difference between right and wrong was $20,000 per month. Go figure!

Jordyn:

Thank you for the information and advice. Greatly appreciated. Have a great day

Jordyn J. Christian-Gingras, J.D said:

Eastern MT and Gary Hutchison are correct. Once your probate process is complete and you have recorded documentation granting you the minerals, you will receive the royalty payments from those producing wells. The operator will in all likelihood require you to complete a transfer order and supply with recorded copies of the full probate file.

Your other benefits will come in the form of potential bonus payments on future leases as well. You should hire an experienced oil & gas attorney to assist you with the negotiation of leases on your behalf going foward and also to assist you in reviewing any division orders that you sign. There are various provisions that can be added or struck from division orders that provide valuable rights to a mineral owner in terms of mispayments.

Good luck!